ANSWER: Both b and c
Explanation:
To protect domestic manufacturers from cheap imports, the Centre on 24th Nov 2016 slapped safeguard duty on import of certain steel products.
Steel products on which safeguard duty was slapped included hot rolled flat sheets and plates (Excluding hot rolled flat products in coil form) of alloy or non-alloy steel.
As per the Revenue Department notification, the effective duty rate will be calculated after deduction of the value of goods.
Anti dumping duty will become payable when import price is below USD 504 per tonne on CIF basis.
CIF means Cost Insurance Freight basis.
Notification has said the duty arrived will be 10 percent and gradually lower to 8 percent in 2018 and 6 in 2019.
10 percent ad-valorem minus anti dumping duty payable will be imposed on imports up to 22nd Nov 2017.
The same will be lowered to 8 percent between 23rd Nov 2017 and 22nd Nov 2018. It will be reduced to 6 percent between 23rd November 2018 and 22nd May 2019
The safeguard duty on import of cheap steel was slapped after steel makers approached the DG of anti dumping and allied duties.
The DG was requested to come up with safeguard measures against imports of cheap steel. Steel makers who approached the DG include JSW, SAIL and Essar.
About Safeguard Duty
- Safeguard duty is imposed on products imported into the country in increased quantities, injuring the domestic industry
- Ad Valorem tax is a tax whose amount is based on value of transaction or property- tax is imposed at the time of transaction in the form of sales or VAT tax.
- Earlier in Nov 2016, government imposed anti-dumping duty on few cold rolled flat steel products from 4 nations including China and South Korea.
